Swiss Trade Balance Release Makes For Trade The Night Before

The Swiss Federal Statistical Office releases the Trade Balance monthly.

The balance is the difference in value between imported and exported goods. A positive trade balance means more goods were exported than imported. High demand in export can affect currency and production.

Foreigners must pay for the nation’s exports with the domestic currency and production must be increased at times of high demand.

Setup Should Have $35 Profit Potential Or More

The CHF Trade Balance is released by the Federal Statistical Office at 2:00 AM ET, Thursday, May 28, 2015. This will make for a trade opportunity the night before when you can set up your trade for a morning expiration.

Set the trade up Wednesday, the night before, as early as 11:00 PM ET, when the 7:00 AM ET expiring Nadex Spreads are released. Specifically, you want to buy a lower Nadex USD/CHF spread and sell an upper Nadex USD/CHF spread. The setup, known as an Iron Condor strategy, should have a profit potential of $35 or more.

To do this, each spread should be around $17 - $18 or more. Also, the ceiling of the bought lower spread should meet where the floor of the upper sold spread is and should be where the then current underlying USD/CHF is trading.

If Spreads Are Not Available For Just The Right Setup, Then No Trade

It’s been analyzed that the underlying USD/CHF market tends to react after this news event release and then will pull back. However, it is unknown which direction the market will go or tends to go. Based on this analysis, the Iron Condor makes for a good strategy.

To achieve max profit, the trade needs to expire with the market in the center, directly between the two spreads that make up the Iron Condor. Therefore, you can leave the trade on until expiration.

Also, if there is not enough implied volatility in the prices of the spreads to provide a $35 or more profit potential, or the right spreads with the right ceiling and floor are not available, then don’t take the trade.

This is a release that comes out monthly and can be traded monthly. Apex Investing analyzes scheduled news events and market reaction going back 12 - 24 months. For a complete calendar and strategies to trade the events, go to www.apexinvesting.com. Nadex can be traded from 49 different countries.